Domino’s Pizza Misses First Quarter U.S. Same Store Sales Consensus Estimate

Image Source: Domino’s

By Brian Nelson, CFA

On April 28, Domino’s Pizza (DPZ) reported mixed first quarter results with GAAP earnings per share exceeding the consensus estimate, but revenue falling short of what the Street was looking for. Excluding foreign currency impacts, global retail sales growth came in at 4.7%, but U.S. same store sales declined 0.5% in the period, missing the consensus estimate. International same store sales growth was 3.7%, excluding foreign currency impacts, beating the consensus estimate. Domino’s experienced a global net store decline of 8 in the quarter, consisting of 17 net store openings in the U.S and 25 net store closings internationally.  

Management had the following to say about the quarter:

Domino’s Q1 results demonstrate that our Hungry for MORE strategy continues to drive market share growth in QSR Pizza across both our US and international businesses. Sustained market share growth reflects a company’s ability to control what is under its control, a key to long term success. In the face of a challenging global macroeconomic environment, our Hungry for MORE strategic pillars are working together to drive MORE sales, MORE stores and MORE profits, annually. This is how we will deliver long term value for our franchisees and shareholders.

Excluding foreign currency impacts, Domino’s income from operations increased 1.4% on a year-over-year basis in the quarter. Net cash provided by operating activities was $179.1 million in the quarter with the firm spending $14.7 million in capital expenditures, resulting in free cash flow of $164.4 million in the period, up 59.1% from last year’s quarter. During the first quarter of 2025, Domino’s repurchased 115,280 shares for a total of $50 million. It still has $764.3 million in remaining authorized amount for share repurchases. We continue to like the long-term picture at Domino’s, and the company remains an idea in the Best Ideas Newsletter portfolio.

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